Nagpur: The Economic Offences Wing (EOW) of Nagpur Police has arrested Arun Khanna (53), a Mumbai-based builder, for allegedly defrauding a Nagpur counterpart of ₹2 crore in a flat sale scam. Khanna, the proprietor of Reality and Developers, had taken up a building project in Andheri, Mumbai, and entered into a contract with Dr. Santosh Tiwari, a Nagpur-based builder, to deliver two flats on the 18th floor of the development.

In 2016, Dr. Tiwari issued a ₹2 crore cheque to Khanna's company, expecting to receive possession of the flats by 2018, as per the contract. However, when Khanna failed to deliver the flats, Dr. Tiwari demanded a refund. Khanna issued a cheque for ₹2.58 crore but refused to honor it, raising suspicions.

Dr. Tiwari's subsequent inquiries in Mumbai revealed that Khanna had defrauded several others. Khanna later promised to deliver only one flat, but failed to fulfill this commitment as well, leading Dr. Tiwari to file a complaint with the Nagpur EOW.

Upon investigation, Khanna fled the city. The EOW tracked him down to Highland Holiday Home in Goa, where he was found spending time with his girlfriend. Following a raid, Khanna was arrested and is now in police custody for six days.